Jabal Omar signs guarantee agreement with Finance Ministry to obtain SAR 1.6 bln facility

Jabal Omar Development Co. signed a guarantee issuance agreement with Saudi Arabia’s Ministry of Finance, whereby the ministry issued a guarantee to Banque Saudi Fransi (BSF) for providing the company with credit facilities amounting to SAR 1.6 billion.

The guarantee was issued after agreeing on a number of representations and warranties to the ministry, in addition to updating the mortgage registered previously to include the guarantee amount, the developer said in a bourse filing today, March 9, 2021.

The tenor of the credit facilities is 15 years from the date of signing of agreement (March 8, 2021).

The funds will be used to complete the remaining work of the phase 3 of the Jabal Omar project, which consists of four towers with 2,160 rooms and a total commercial area of 26,435 square metres and 621 parking spaces.

Board member Thalb Al-Shamrani is a related party since he is a senior executive in the Ministry of Finance.